Accounting Cases- Kaplan

1159 Words Nov 8th, 2012 5 Pages
Chapter 1

Question 1.1

When Mr. Drucker says, "Be data literate" he means that one should know how to use data effectively to the company 's benefit. There are two challenges that one faces in attempting to be data literate. The first challenge is deciding what information to use, what is should be used for and how it should be used. The second challenge is how to test and put the data together with the existing information system to make them effective in a company 's decision process. The most difficult challenge will be bringing the computer based data processing and the accounting system together to ensure the most beneficial decisions for a company.

Question 1.2

The best combination of paradigms for the
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Question 2.2a

A "strategy map" is a comprehensive framework for describing a strategy. The strategy map specifies critical elements and their linkages for an organizations strategy and was design for describing and implementing a strategy that may be as useful as the income statement, balance sheet and statement of cash flows for financial planning and reporting.

Question 2.2b

According to Kaplan and Norton, the two basic approaches for increasing economic value are revenue growth and productivity. Each of these strategies embodies two components. Within the revenue growth strategy are the components of building revenue through new markets, products and customers and increasing sales through existing customers. Within the productivity strategy a company strives to improve costs and utilize its assets more efficiently.

Question 2.3

The five principles of Strategy Focused Organization are as follows: 1) to translate the strategy to operational terms, 2) align the organization to the strategy, 3) make strategy everyone 's everyday job, 4) make strategy a continual process and 5) mobilize leadership for change. When translating strategies into operational terms, companies should utilize strategy maps and balance scorecards to specify detail

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